Selangor Dredging bullish on sales

SELANGOR Dredging Bhd expects future earnings to improve as it aims to launch several new projects in Klang Valley and Singapore worth a combined RM1 billion over the next two years.

Its unbilled sales of RM650 million from its recent launches namely Five Stones in Petaling Jaya, 20trees West in Kuala Lumpur and Gilstead Two in Singapore will also drive growth, chairman Eddy Chieng Ing Huong said.

Last year, Selangor Dredging posted a net profit of RM18 million, four per cent more than in 2008.

"We will continue to capitalise on the projects we have launched. From the unbilled sales, it is quite clear the company will do well," Chieng said after the company's shareholder meeting in Kuala Lumpur yesterday.
Selangor Dredging has five ongoing projects, two in Taman Melawati in Kuala Lumpur, one in Petaling Jaya and two in Singapore worth RM1.2 billion, which will last another four years.

Chieng said the projects have garnered an average 80 per cent sales over the past 12 months.

The condominiums and bungalows are priced at more than RM1 million and RM3.5 million, respectivly. For the project in Singapore, the apartments are worth more than S$1.8 million (RM4.8 million) each.

"We are able to sell our projects at a premium because of the concept. Our purchasers like what we sell and we do not price ourselves like a commodity.

"A lot of our purchasers buy a collection of properties here and in Singapore. Buyers are very discerning. Even during bad times they buy," he said.

Chieng said in the next six months it will launch Dedaun off Jalan Ampang, comprising low-rise condominiums, and 262, Balestier Road in Singapore, which is a commercial and residential development, both worth some RM350 million.

It then plans to launch high-end apartments in Batu Feringgi in Penang, a commercial development next to Five Stones, landed housing in Puchong and Dengkil, and a residential project in Singapore.

On the controversial Damansara 21 hillslope project in Bukit Damansara, Chieng said the company is awaiting the approval from the authorities, including City Hall, on when works can start.

A stopwork order was issued some 30 months ago on the project, which consists of 21 bungalows priced RM10 million to RM15 million each, following the Bukit Antarabangsa landslide incident.

By Business Times